of P32.000, and paid a cash dif perty be initially recognized?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7-8
Transcribed Image Text:Mode 5- Exchange, 2* Priority
On July 1, 2017, Banded Water Company traded in an old machine with a carrying amount of P10,000 for a similar new
machine having a cash price of P32,000, and paid a cash difference of P19,000.
7) How much should the property be initially recognized?
A 32.000
B. 29,000
C. 51,000
D. 13,000
8) How much is the gain or loss from the trade in transactions?
A 22,000
B. 10,000
C. 3,000
D. Zero
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